The domestic equity barometers ended with steep losses after a volatile session on Wednesday. The Nifty, however, managed to hold the 15,000 mark. Private banks and auto shares corrected while pharma, media and realty stocks were in demand.
The barometer index, the S&P BSE Sensex, declined 290.69 points or 0.58% to 49,902.64. The Nifty 50 index lost 77.95 points or 0.52% to 15,030.15.
Bajaj Finserv (down 1.68%), HDFC (down 1.68%), HDFC Bank (down 1.29%) and ICICI Bank (1.24%) were major drags.
Index heavyweight Reliance Industries (RIL) rose 0.43% to Rs 1996.35, supporting the benchmarks at lower levels.
The broader indices bucked the trend. The BSE Mid-Cap index rose 0.53% and the BSE Small-Cap index gained 0.35%.
The market breadth was positive. On the BSE, 1,794 shares rose and 1,264 shares fell. A total of 174 shares were unchanged.
The undertone of the market was upbeat amid hopes of reopening of economic activity soon as fresh daily COVID-19 cases declined. Encouraging quarterly results also boosted sentiment.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 16,42,44,659 with 34,04,925 deaths. India reported 32,26,719 active cases of COVID-19 infection and 2,83,248 deaths while 2,19,86,363 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
India reported a total of 2,67,334 COVID-19 cases in the last 24 hours. It marks the third consecutive day when cases have come below the 3-lakh mark. The country, however, recorded its highest one-day death toll of 4,529 deaths.
Numbers to Watch:
The yield on 10-year benchmark federal paper remained flat at 5.976% as compared with 5.976% at close in the previous trading session.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 73.18, compared with its close of 73.05 during the previous trading session.
MCX Gold futures for 4 June 2021 settlement fell 0.46% to Rs 48,086.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, rose 0.22% to 89.95.
In the commodities market, Brent crude for July 2021 settlement fell $1.41 at $67.30 a barrel. The contract fell 75 cents, or 1.08% to settle at $68.71 a barrel in the previous trading session.
Foreign Markets:
US Dow Jones index futures were down 209 points, indicating a weak opening in US stock today. European shares fell across the board while Asian stocks ended mixed on Wednesday, 19 May 2021. Markets in Hong Kong and South Korea were closed for holidays.
China has banned financial institutions and payment companies from providing services related to cryptocurrency transactions, and warned investors against speculative crypto trading.
U.S. stock indexes wiped out earlier gains and closed at their session lows on Tuesday as Big Tech stocks reversed lower, while data showing housing starts dropped sharply last month also weighed on sentiment.
Housing starts tumbled 9.5% to a seasonally adjusted annual rate of 1.569 million units last month, the Commerce Department said on Tuesday.
Buzzing indian Segment:
The Nifty Pharma index rose 1.22% to 14,001.35 on value buying. The index declined 2.12% in the past five sessions.
Cipla (up 2.05%), Cadila Healthcare (up 1.97%), Lupin (up 1.72%), Aurobindo Pharma (up 1.48%), Alkem Laboratories (up 0.76%), Dr. Reddy's Laboratories (up 0.60%), Divi's Laboratories (up 0.44%) and Biocon (up 0.44%) advanced.
Sun Pharmaceutical Industries rose 1.90% after Life Insurance Corporation of India (LIC) purchased 4.83 crore equity shares or 2.016% stake of the drug major. Post transaction, LIC's stake in Sun Pharma has increased to 7.026% from 5.010% held earlier. The deal was executed as a market purchase between 23 June 2017 to 17 May 2021.
Torrent Pharmaceuticals rose 1.25%. On a consolidated basis, the drug maker's net profit rose 3.18% to Rs 324 crore on 0.15% increase in net sales to Rs 1,915 crore in Q4 March 2021 over Q4 March 2020. There was a one time tax benefit of Rs 53 crore under the CARES Act enacted by US Government in March 2020 in response to Covid-19 Pandemic.
Operational EBITDA grew 6% to Rs 582 crore in Q4 March 2021 compared with Rs 548 crore in Q4 March 2020. Operational EBITDA margin improved to 30% in Q4 FY21 from 28% in Q4 FY20.
Glaxosmithkline Pharmaceuticals fell 2.38%. The company's consolidated net profit tanked 89.6% to Rs 14.33 crore on 4.9% increase in net sales to Rs 813.75 crore in Q4 March 2021 over Q4 March 2020.
Earnings Impact:
Tata Motors tumbled 5.37%. On a consolidated basis, the auto major reported net loss of Rs 7,605.40 crore in Q4 FY21 lower than net loss of Rs 9,894.25 crore in Q4 FY20. Total revenue from operations during the quarter increased 41.8% year-on-year (YoY) to Rs 88,627.90 crore in Q4 FY21.
During the period ended March 2020, an exceptional charge of Rs 14,994.30 crore was recognized under the Jaguar Land Rover (JLR)'s reimagine strategy. It comprised of asset write downs of Rs 9,606.11 crore in relation to models cancelled and restructuring costs of Rs 5,388.19 crore.
JLR reported pre-tax profits of 534 million pounds in Q4 FY21. Fourth quarter revenue increased 20.5% YoY to 6.5 billion pounds, led by China and the new Defender.
JLR said that coronavirus cases are still high in many markets while supply chain issues, in particular for semi-conductors, have become more difficult to mitigate and are now impacting production plans for Q1. The company is working closely with affected suppliers to resolve the issues and minimise the effect on customers.
Tata Motors standalone (including joint operations) revenue for the quarter increased 104% to Rs 20,046 crore. The company recorded a pre-tax profit before exceptional Rs 145 crore as against pre-tax loss of Rs 2,215 crore in Q4 FY20. The company's India operations continued its strong sequential recovery in the quarter with CV revenues recovering to pre-pandemic levels and PV revenues reaching multi-year highs.
With respect to outlook, the company said that while demand remains strong, the supply situation over the next few months is likely to be adversely impacted by disruptions from COVID-19 lockdowns in India and semi-conductor shortages worldwide. The company expects Q1 FY22 to be relatively weak due to this as well as rising commodity inflation and expect to improve gradually from the second quarter.
Indian Oil Corporation (IOCL) gained 1.56% after the PSU OMC posted standalone net profit of Rs 8,781.30 crore in Q4 FY21 as compared a net loss of Rs 5,185.32 recorded in Q4 FY20. The company's revenue from operations increased by 17.7% to Rs 1,63,605.67 crore in Q4 FY21 over Q4 FY20.
The company said its average gross refining margin (GRM) for the period April-March 2021 zoomed 6950% to $5.64 per barrel against $0.08 per barrel for the same period of the previous year. The core GRM or the current price GRM for the period April- March 2021 after offsetting inventory loss/ gain comes to $2.31 per bbl.
PI Industries slumped 5.87%. On a consolidated basis, the company reported 62.4% jump in net profit to Rs 179.80 crore in Q4 FY21 as against Rs 110.70 crore in Q4 FY20. Net sales during the quarter increased 40% year-on-year (YoY) to Rs 1197.10 crore. EBITDA margin, however, declined by 290 bps to 19% as on 31 March 2021 from 22% as on 31 March 2020, mainly on account of reduced gross margin despite operating leverage benefit.
Aarti Industries declined 4.64%. The company posted a 23.3% surge in consolidated net profit to Rs 136.10 crore on 12.4% rise in net sales to Rs 1209.35 crore in Q4 FY21 over Q4 FY20.
The company's board has recommended issuing one bonus equity share for each equity share held (1:1) subject to approval of the shareholders of the company. The company said it will inform the record date in due course.
The board has also approved raising funds by issuing equity shares through qualified institutional placement, private placement/public issue of equity/debt securities, preferential issue or through any other permissible mode for an aggregate amount of up to Rs 1500 crore.
Brigade Enterprises added 3.95%. The realty company reported a sharp surge in consolidated net profit to Rs 39.57 crore in Q4 FY21 from Rs 2.68 crore in Q4 FY20. Net sales grew 24.4% YoY to Rs 791.24 crore during the quarter. The company reported the highest ever pre-sales of 1.66 million square feet valued at Rs 1,018 crore during Q4 FY21.
Axis Bank Offer for Sale (OFS):
Axis Bank rose 0.67% to Rs 716.70. The bank's OFS for non-retail investors received subscription for 13,47,57,959 shares. It was subscribed 415.92% on the base non-retail total offer size of 3,24,00,000 and 257.81% on the total non-retail total offer size (base size + green shoe) of 5,22,70,711 shares.
The OFS opened on Wednesday (19 May 2021) for non-retail investors, while both retail as well as non-retail investors will be able to subscribe on Thursday (20 May 2021). The bank has reserved 10% of the offer for retail investors.
Through the OFS, the Specified Undertaking of the Unit Trust of India (SUUTI) proposes to sell up to 3.60 crore equity shares (representing 1.21% stake), with an option to sell an additional 0.74% stake, or 2,20,78,568 equity shares in case of oversubscription.
As on 31 March 2021, SUUTI held 10,31,75,065 shares or 3.45% stake in the private bank.
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